US consumer spending softens in December even as inflation eases

The data was included in the advance fourth quarter gross domestic product report, which showed consumer spending maintaining a solid pace of growth

US consumer spending fell in December, putting the economy on a lower growth path heading into 2023, while inflation continued to subside, which could give the Federal Reserve room to further slow the pace of its interest rate hikes next week.

Consumer spending, which accounts for over two-thirds of US economic activity, dropped 0.2 per cent last month, the Commerce Department said on Friday.  Data for November was revised lower to show spending slipping 0.1 per cent instead gaining 0.1 per cent as previously reported. 

The data was included in the advance fourth quarter gross domestic product report, which showed consumer spending